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The labor market continued to improve in August with nonfarm payrolls growing by 1.4M and the unemployment rate dropping to 8.4%. The number of persons on temporary layoff declined by 3.1M while the labor force participation edged up to 61.7%.
In July, the pace of job creation moderated and the number of unemployed fell, reflecting the lack of dynamism in the labor force. As a result, the national unemployment rate fell from 20.8% to 19.8% between June and July.
Labor dynamics that began in May continued in June, at a slower pace, especially in the cities. The increase in labor supply seemed to moderate in June and less dynamism of employment (labor demand) was observed. The number of unemployed increased in June.
Today’s labor market report once again showed that the economy is on the mend. However, this environment creates more complexity for Congress, as it supports arguments from both sides of the aisle. That said, Fed officials will continue to take additional steps as it transitions from “stabilization” to “accommodation”.
August 4, 2020
Spain | A notable improvement in employment in July, but not enough to overcome the crisis
Social Security affiliation increased by 161,217 people (-3.8% YoY) and unemployment fell by 89,849 (25.3% YoY). Excluding seasonality, employment grew by 150,000 people and unemployment fell by 85,000. However, the estimated impact of the crisis is still significant: 1,175,000 contributors and 843,000 unemployed.
The reform proposal is correct and constitutes a step in the right direction. The SHCP would propose adjustments to the current regime in order to increase coverage and replacement rates of IMSS pensions
May shows progress in the labor market, due to the gradual opening of the economy, with the recovery of 15% of the jobs and 33% of the labor force lost between February and April. However, the high level of inactivity seen until April translated into an increase in the number of the unemployed in May.
The fall in GDP expected as a result of COVID-19 will be unparalleled in history. The decline in GDP per working-age population in 2020 is expected to be 10% greater than the decline seen in 2019, marking a return to levels seen in 2015.